President Recep Tayyip Erdogan has said Turkey will shut the border and could halt its transit of oil from Iraqi Kurdistan to the Turkish Mediterranean port of Ceyhan, an economic lifeline for the Iraqi KurdsSTRINGER (TURKISH PRESIDENT PRESS OFFICE/AFP/File)

Erdogan vowed that Iraqi Kurdistan 'will pay a price' for the 'unacceptable' vote

Turkish President Recep Tayyip Erdogan said Saturday that Israel's intelligence agency played a role in Iraqi Kurdistan's independence vote -- allegedly proved by the waving of Israeli flags during celebrations for the "yes" victory.

In a televised speech, Erdogan said Turkey had been saddened to see some Iraqi Kurds acclaiming the referendum outcome with Israeli flags.

"This shows one thing, that this administration (in northern Iraq) has a history with Mossad, they are hand-in-hand together," Erdogan said in Erzurum, in eastern Turkey.

Erdogan on Tuesday had suggested that his country's ties with Israel were in jeopardy over the Jewish State's public support for the vote, which was fiercely opposed by Ankara.

Iran and Iraq's central government in Baghdad have also have expressed alarm over the referendum and have refused to recognize its validity.

Israel has been the only country to openly support an independent Kurdish state, with Prime Minister Benjamin Netanyahu backing "the legitimate efforts of the Kurdish people to attain a state of its own."

Erdogan has derided the Israeli support.

"Are you aware of what you are doing?" Erdogan said in an appeal to Iraqi Kurdish leaders. "Only Israel supports you."

- 'Wake up from this dream'-

Ankara has threatened a series of measures to punish Iraqi Kurds, including shutting the land border between Turkey and the region and halting the transit of oil from Iraqi Kurdistan to the southern Turkish port of Ceyhan, an economic lifeline.

On Friday, the Turkish carriers Turkish Airlines, Atlas and Pegasus suspended their flights to Iraqi Kurdistan for an unspecified period of time.

Erdogan on Saturday vowed that Iraqi Kurdistan "will pay a price" for the "unacceptable" referendum, without elaborating.

"An independent state is not being founded in northern Iraq, but on the contrary a continuously bleeding wound is being opened," he said.

"To ignore this reality benefits neither us, nor our Kurdish brothers in Iraq," he said, calling on Iraqi Kurds to "wake up from this dream" of independence.

Prime Minister Binali Yildirim said Turkey was working with Iraq and Iran in order to "thwart the games being played in the region."

Yildirim had previously announced plans to hold a summit with Iranian and Iraqi leaders to coordinate how to respond to last Monday's referendum.

Erdogan is due to visit Tehran on Wednesday.

Ankara had previously refused to engage in official contacts with Iraqi Kurds, fearing any action that could encourage the creation of an independent Kurdish state could embolden its own Kurds.

But as Turkey's economy has boomed, Erdogan has moved to forge trade ties with Iraq's Kurdistan region, helping to make Iraq the second-largest market for Turkish exports last year, after Germany.

Iraqi Kurdish leader Massud Barzani has also become a frequent visitor to Turkey.

Business sources quoted in Turkish media have warned that the closure of the Habur border gate could affect $7 billion (5.9 billion euros) of trade.